BTC faces rejection at major resistance, testing investors’ confidence after weeks of rapid gains
Bitcoin (BTC) has slipped below $122,000, cooling off from its recent rally that pushed prices to new highs above $125,000 earlier this week. The move comes as traders take profits and momentum indicators flash signs of exhaustion across the broader crypto market.
On the daily BTC/USD chart, Bitcoin is showing a clear rejection from the $124,000–$125,000 resistance zone, a level that coincides with previous highs and institutional selling pressure. The red zone on the chart marks an area where bulls have repeatedly struggled to gain traction, prompting a short-term correction after the sharp vertical rise in late September.
“Bitcoin’s recent breakout was unsustainable in the short term. The market needs to reset before attempting another leg higher,” said BITX digital asset strategist. “The key is whether BTC can stabilize above the $120,000 level — that would indicate healthy consolidation rather than trend reversal.”
Below current levels, traders are eyeing support zones around $118,000 and $110,000, shown in green on the chart. These areas acted as strong accumulation points in previous weeks and could once again attract buyers if the selloff deepens.
Despite the pullback, Bitcoin remains up more than 13% this month, underlining strong macro demand and renewed institutional participation. Still, the overheated rally has raised concerns that the market may have advanced too far, too fast.
“This dip looks like a technical cooldown after a parabolic run,” one of BITX analyst noted. “If Bitcoin holds $118K on the daily close, the overall bullish structure remains intact.”
Other major cryptocurrencies, including Ethereum (ETH) and Binance Coin (BNB), have also eased slightly after strong weekly performances.
For now, traders are watching closely to see if Bitcoin can reclaim $122,000 and confirm it as new short-term support. A decisive rebound could pave the way toward $130,000, while a break below $118,000 may extend the correction phase.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.